The Berachain Layer 1, built on Cosmos and compatible with EVM, has officially launched its public testnet Artio ahead of schedule compared to the planned mainnet, expected in the second quarter.
In addition, Berachain puts at the forefront the innovative concept of “proof of liquidity” consensus, aimed at synchronizing incentives between network security and liquidity availability.
Let’s see below all the details.
Berachain: the advanced features of Artio’s testnet
As anticipated, Berachain, a Level 1 blockchain compatible with Ethereum Virtual Machine based on Cosmos SDK, has launched its public test network called Artio.
The previous private testing period of Berachain, conducted under non-disclosure agreements with various partners, saw approximately 50 teams implementing contracts in one month, as officially stated.
According to Berachain, currently there are over 30 native teams relying on Berachain, with another 100+ teams from different networks planning implementation on testnet and mainnet.
Among these are notable brands such as Pendle, Redacted, Sudoswap, Abracadabra and many others.
With the final launch expected by the end of the year, Berachain will also be supported by custodians, messaging protocols, cross-chain bridges, and data availability solutions.
We remind you that Berachain’s mainnet is scheduled to be released in the second quarter of this year.
Berachain revolutionizes consent with ‘Proof of Liquidity’
Berachain has adopted an innovative variant of the delegated proof of stake consensus, called “proof of liquidity”.
This attack-resistant mechanism is designed to harmonize staking, aligning incentives between security and liquidity, as stated by the team behind the project.
As we know, in traditional proof of stake chains, users have to choose between staking with a validator or providing liquidity on DeFi platforms.
The liquidity proof of Berachain, instead, allows users to contribute to the security of the network by providing liquidity to DeFi protocols.
In the Berachain tri-token system, the staking tokens BGT can be earned by providing liquidity to on-chain protocols, such as a native DEX or a stablecoin lending platform.
The BGT, naturally illiquid and tied to the ecosystem, can be burned to obtain the native gas token of the network, bera, in a one-way process.
The validators reinvest the staking rewards into the Berachain ecosystem through supported protocols to keep the network liquid.
The delegates of BGT tokens to validators earn commissions in honey tokens, the native stablecoin of Berachain, in addition to incentives from the validators they are delegated to.
The team emphasizes that contributing to liquidity on the chain is essential to ensure security, offering users additional rewards.
The protocols that pass governance votes can integrate their smart contracts into the liquidity pool of Berachain, attracting liquidity at reduced costs and improving capital efficiency.
In addition, Cosmos validators have the opportunity to attract new capital and delegates from the EVM world, overcoming traditional restrictions for the growth of the Cosmos ecosystem.
Crypto Bear-Themed: launch expectations
Berachain, the crypto project characterized by a ‘bear’ theme, is led by a group of co-founders known by pseudonyms such as Homme Bera, Dev Bear, Papa Bear, and Smokey the Bera.
The team, now composed of thirty members, boasts previous work experiences on significant projects such as Sui, Polygon, Mantle, Coinbase, Chainlink, and Aave.
In development since the end of 2021, Berachain represents the main initiative of the co-founders in the industry after the previous NFT project “Bong Bears” and other related collections.
In an interview with The Block in April of last year, Smokey the Bear initially anticipated the launch of the public testnet, and potentially the mainnet, in 2023.
This comes after raising 42 million dollars in a private token round led by Polychain Capital. Among the participants were also Hack VC, Shima Capital, Robot Ventures, and Goldentree Asset Management, among others.
Berachain has started the fundraising for this round shortly after the collapse of the cryptocurrency exchange FTX in November 2022, with the agreement being concluded “not long after,” stated Smokey the Bera.